The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-10-15

financial and industrial position of the
west and northwest, which he had
gathered from observation and inquiry on
an extended tom from which he is now
returning. In answer TO agcncml ques-
ton regarding
THE BUSINESS SITUATION
in the territory he had visited, he said:
ave went from Chicago TO the north
west as far as Duluth, and then turned
southwark, coming to st. Louis via Sioux
City, Omaha and Kansas City, and at all
these cities, and ut the intermediate cen
tiers Of trade, we found plenty of evidence
Of great commercial prosperity. The mer.
camille people are active, energetic, and as
far as could judge, are employing sound
business methods in the conduct of their
enterprises, but | could see, and | trust
that they are not blind to it, that factors
Of the most dangerous kind are wedging
themselves in between the basis Of their
operation and the trade expansion which
their efforts have and are still securing.
The prosperity Of the country we have vis-
tied is phenomenal, and but for the de-
monlizing and depressing influences
which, it appears TO me, are rapidly APP
preaching il, and | may say the shadow Of
coming financial disaster il already upon
about every enterprise, the future would
be promising indeed; but, II ] may use the
expression, u great many have 10 the
wind, and | do not see what is tn save all
from sharing in the whirlwind harvest"
"What is the nature Of these dangerous
factors you speak OFF,
DANGEROUS ELEMENTS.
"There are several very dangerous cle-
ments threatening the business situation in
the west, but the more conspicuous and
influential for evil are the real estate spccu-
lation craze and their constructions, this
year Of nj least 500 more miles Of railway
than are necessary 10 meet the require
mcnts of commerce. These reckless adj
ventures have already absorbed millionsoi
actual cash and much of il must ne, csal-
rily be a total loss, and the elc OF the
loss will be very widespread. Those who
have invested in this new railway mileage
will, in the near failure, have nothing 10
show for their money bat worthless stocks
and bonds. The properties will he sold
under the hammer and the new owncm
may in ten or twelve years hence, whom
the productions Of the country tributary 10
llflu hlNt ElhNh UP " Aitlnf hltht hl'ih
paying ventures, but the investments In
the original plants will be planted beyond
the hope Of resurrection. This viii entail
n lofs Of more than 100000, GOO, which
somebody will have to bear. But that h
not the most threatening OF the factors re-
ferrcd TO. The real g tate craze will bring
7 greater disaster, because 20 many more an
directly interested. | found at nearly
every one Of the trade ccntcrs We visited
the most extnvagant and untcnable views
Of prospective real estate values. Why,
found II n very common thing TO hear men
ask, and see apparently sensible men pay
= 81, 900 and more for town lots situated in u
corn field or ON a hill top one and two
? miles from the business center Of the
town, and which will in all human proba.
bility be suburban property for the next
twenty years, IL only for agricultural or
grazing purposes. These lots are probably
( intrinsically worth from SO TO $50 per
I acre. Now
= TuE ANGER
4 from this craze lies in this The investors
in these real estate ventures pay NJ a rule
, from % 90 80 per cent. OF the purchase
: price in cash and secure the deferred pay
; ments by mortgage, aud when the crash
! comes, and II il coming like a cyclone, the
y cash payments will I've swep; away by dc
= probation in values, leaving the holder OF
> the mortgage the property M his only ~.
curity, which will prove TO lack about M
I per cent. Of being enough 10 liquidate his
y claim, and the worst Of II IN about every.
. body Is dabbling In real estate at these
= fabulous prices, and of course when the
cani.house begins 90 tumble nearly every.
, body will be involved. The worst panict
= this country ever had were the direct aud
: legitimate result Of real estate speculation,
) refer 20 1897 and 1857, and since the craze
now ON IL vastly more extensive than /
v was In either Of those ycan, I do not ~,
!. any reason why the collapse should not b,
c~orrcspondingly greater in disastrous ef
y fects. The real estate craze and the cuh,
- TO build railways where there IL nothing
Y for railways 10 haul have been the dirci
= cause Of more financial disasters In TIN
/ country than all else put together
a RAY oF HorE.
"Is Il not true that much Of this comm,
\, trouble VIII be discounted long before 4
A. arrives in forcc1'
a "Ycs. otherwise no enterprise could sur
vivc the shock. Nearly all the older an'
n stronger business establishments " th'
n. country are becoming more and more con
,e SENTATIVE, and because they are the c0un
NJ try will have safe and substantial nllyinI
points, and hence the greatest danag,
will fall upon those who have inycsic'
their all wholly In prospective real esiat
cs equities and worthless railway securities
But the shock will be- felt more or less sen
=. sibly In all business plants
" about what time may this cyclone q
he disaster be expected"
"Not this year nor next, / think. TIL
r. fact Is, the legitimate. Cuisines enterprise
J. Of the entire country arc upon n strongc
basis than ever before. All banking IN
T.. siituiions aud all commercial and indul
ON trial establishments are prospecting thl
wear as never before, and although trad
by expansion has been maryelously great,
has not M yet been greater than the puI
m. chasing ability Of consumer, aud henc
ny the position Of our general business into
ko csts. aside from the purely speculative,
at Az strong that u can Withstand the attach
Of the disturbing factors I have referred
a great while, and that Is why ] think III
evil days are n year or more niho iniur'
or. But this county " great, and Ne hr
hat grra, people and shall come out Of II nj
.aJ and ~ shall teach MS 10 avoid crnAcs
W. al kinds and do business on sound bus
ere mess principles, the lesson will not has
~ been too expensive,
TnE ~ A o. DEAL.
"Witl the absorption Of the Bpltimo
- 4 Ohio telegraph lines by the WcStcI